CBOE Stock Exchange (CBSX) has agreed to acquire the National Stock Exchange (NSX), an all-electronic stock exchange.
CBSX will operate NSX as a separate exchange but with consolidated data systems and business operations.
The acquisition was approved by the boards of the two exchanges and is subject to regulatory approval. The deal is expected to close this fall.
“The acquisition of NSX is an important milestone, marking a new phase of growth at CBSX,” says David Harris, CEO of CBSX. “Economies of scale should enable us to efficiently operate a second exchange and to grow our customer base by providing additional pricing models to the U.S. equities marketplace.”
CBSX recently relocated from Chicago to Secaucus, New Jersey, a move aimed at increasing execution speed to its primarily East Coast-based customers.
“With the changing landscape of the securities marketplace and after careful consideration, NSX felt it was in the best interests of its customers to pursue an acquisition by a market structure innovator such as CBSX,” says Joseph S. Rizzello, CEO of NSX. “We are confident that the acquisition by CBSX will be a seamless transition and will enable NSX to continue to showcase its strong infrastructure without any interruption to the outstanding service and technology expected by NSX’s customer base.”
CBSX, which launched in 2007, is partially owned by the Chicago Board Options Exchange (CBOE).
“As the creator and the largest owner of CBSX, CBOE supports CBSX’s effort to acquire another exchange ‘medallion’ in this highly competitive securities arena, says CBOE Chairman and CEO William J. Brodsky.
(CG)